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Best Bank: Banco de la Producción (Banpro) |
Banco de la Producción (Banpro) showed this year that there was still a profitable path through the financial downturn. In the past 12 months, Banpro has actively managed its portfolio and carefully focused on profitable clients – a push that resulted in a fall in its credit cards in circulation by more than 100,000. Still, in March 2009 the bank surpassed the $1 billion asset threshold.
The bank also adopted a prudent position on liquidity. This combined with a higher write-off risk and led to a decrease in the return on assets from 2.2% last year to 1.7% this year.
In order to maintain international reserves, the Nicaraguan government put pressure on liquidity in the banking system. As a result credit growth shrank. This was exacerbated in November when political unrest prompted jittery depositors to withdraw their balances.
However, Banpro has maintained profitability and has organized itself to survive the slowdown. It deserves recognition for taking difficult but careful strategic steps in a slowing market.
